State v. Southern Exp. Co.
| Decision Date | 10 August 1909 |
| Parties | STATE v. SOUTHERN EXPRESS CO. |
| Court | Georgia Supreme Court |
Syllabus by the Court.
The act approved August 17, 1903 (Acts 1903, p. 18), which allows the amount of an occupation tax imposed by a municipality, paid by a corporation liable for a franchise tax under the act approved December 17, 1902 (Acts 1902, p. 37), to go in reduction of the amount due to the municipality on its franchise tax, is not limited to corporations that pay occupation taxes in consideration of the exclusive use of a franchise, but applies generally to such as are subject to a franchise tax, and that have paid a municipal occupation tax for exercising the franchise.
The act of 1903 above referred to does not violate article 7, § 2 par. 1, of the Constitution, which requires that "all taxes shall be uniform on the same class of subjects and ad valorem on all property," etc., because it allows a corporation to deduct from the municipal tax on its franchise the amount paid by such corporation to the municipality as an occupation or privilege tax or charge for exercising the franchise.
Nor does such act offend the constitutional guaranty in the Bill of Rights (article 1, § 1, par. 2 [Civ. Code 1895, § 5699]) that the protection to person and property shall be impartial and complete.
Error from Superior Court, Fulton County; W. D. Ellis, Judge.
To a levy of a fi. fa. by the State of Georgia upon the property of the Southern Express Company, it interposed an affidavit of illegality. The illegality was sustained, and the state brings error. Affirmed, with direction.
By an act approved December 17, 1902, (Acts 1902, p. 37), the General Assembly provided for and required the payment of taxes on franchises, and prescribed a method for the return and payment of such taxes. The act provides that the valuation for taxes of such franchises, in each county and municipality in which the franchise is exercised, shall be apportioned to each county and municipality as is now provided by law for the apportionment of the personal property of railroad companies, and the taxes due to each county or municipality on such franchises shall be collected and enforced as now provided by law in the case of other taxes due the same by railroad companies. By an act approved August 17, 1903 (Acts 1903, p. 18), it was enacted: (1) "That whenever the tax, or any part of the tax, assessed on, or on account of, any franchises as defined in the act approved December 17, 1902, providing for the payment of taxes on franchises, is due and payable to or for the use of any county, city, town, or village in which the tangible property is located, and it shall appear that the person partnership, association, or corporation affected has paid or is liable to pay, to such county, city, town, or village, for its exclusive use within the year for which taxes on or on account of the franchises is assessed under any agreement therefor, or under any statute, ordinance, resolution, or by-law requiring the same, any sum based upon a percentage of gross receipts, or any other income, or any occupation or privilege tax or charge, or any sum of money on account of, or as a consideration for, such franchise or privilege granted to or possessed by such person, partnership, association, or corporation, all amounts so paid, or liable to be paid, for the exclusive use of such county, city, town, or village, except the money paid for the ad valorem taxes due such county, city, town, or village, on account of the tangible or physical property located therein, shall be deducted from the portion of the tax due such county, city, town, or village on account of the franchise owned or possessed by such person, partnership, association, or corporation." (2) "That any money that may be paid or expended by such person, partnership, association, or corporation for bridge rentals, or for paving or repairing of pavement of any street, highway, or public place, shall not be included within the amounts provided in section 1 of this act, to be deducted from the portion of the franchise tax payable to the city, county, town, or village." (3) "That the sums referred to in section 1 of this act shall be paid to the county, city, town, or village entitled thereto, notwithstanding the passage of the franchise tax act hereinbefore referred to, but that such sums, when paid, shall be considered a payment on account of, or in full, as the case may be, of the tax due such county, city, town, or village, on account of the franchise, and that, if the amount so payable is greater than the amount of the franchise tax due such county, city, town, or village, such payment shall be in full thereof, and, if less, the difference in amount shall be paid, but no greater credit shall be allowed on account of such payment than the amount of the franchise tax due such county, city, town, or village for the current year."
On February 20, 1907, W. A. Wright, Comptroller General, issued his fi. fa. against the Southern Express Company for $250 as its tax for the year 1904, due the city of Atlanta, and interest at 7 per cent. per annum from December 20, 1904 under and by virtue of the laws of the state of Georgia providing for the taxation of railroads and other corporations in this state for municipal purposes, said amount being the unpaid balance due the city of Atlanta by the Southern Express Company upon its intangible property located in the city of Atlanta, and upon the value of its franchise pertaining thereto, as fixed by the returns made to his office, and the assessment thereon made in obedience to the law for the year 1904. This balance being due, and payment having been refused by this company, this fi. fa. was levied upon the property of the express company, which interposed its affidavit of illegality, wherein it alleged that the fi. fa. was proceeding with illegality against it ...
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